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MONEY With Melissa Francis

News/Business. Melissa Francis with a breakdown of the day's top stories and their impact on the American Taxpayer. New.

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Us 21, China 13, U.s. 13, Obama 2, Neil 2, Mr. Reagan 2, Nfl 2, Wilbur 2, Obama Administration 2, America 2, Delta 2, Louisiana 2, France 2, Joe Flacco 2, Cialis 2, Recognia 1, Konica 1, Orlando International 1, Kitt 1, Multipolicy 1,
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  FOX Business    MONEY With Melissa Francis    News/Business. Melissa Francis with a breakdown of the day's  
   top stories and their impact on the American Taxpayer. New.  

    March 8, 2013
    5:00 - 6:00pm EST  

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melissa: to the airport to find love or at least a quick date. me at the airport. yes. me at the airport. dating website for travelers. just released its list of the best airports to up. east coast dominates due to bad weather and long delays, of course. people surveyed put orlando international at the top of the list. not only a large number of bars and restaurants, but it as a hotel in the main terminal. >> i see. >> who else to miami, newark, boston globe and airport and philadelphia around at the top five. >> of thumbs-up. i don't know what he is referring to perry's have for the two top banks to watch. number two will be the small-business optimism index. released by the national federation of independent businesses. the index rose nine tenths of a point in january to 88.
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>> number one thing to marked -- watch, the markets. the s&p joins the party. all that and more coming up. its "money". >> here's what is "money" tonight. a strong, solid jobs report. unemployment is not going down for the reasons you think. we take off the rose colored glasses until you the real numbers on where the economy stands. plus, american wealth is back. we have recovered $16 trillion. don't count your money at the poker table yet. all the "money," our panel will explain why. ann the kickstart to the keystone. the pipeline proponents want to sidestep the need for presidential approval. how quickly could the keystone get the green light, even when they say it ain't, it's always about "money." ♪
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all right. first, let's turn to other market moment. a record date. and of looking almost unstoppable. the strong jobs report. another solid boost to stocks. the dow posting its fourth straight record close rising for the sixth straight session. nasdaq with the rest of your high. and just 14 points from its all-time closing high. and our top story tonight, jobs. the february numbers are out, and a crest expected any teeseven expectation, bringing unemployment down. hold on to your hat. we go behind the headlines here on "money." there is more the you need to know. the labor force participation rate dropped to 63 and a half%. so with fewer people are looking for work, the encouraging numbers look better than they actually are. do they really reflect the true
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state of the economy? with us now, thank you for joining us. good to see you. so, the unemployment rate drops to a below where it was when president obama first was elected over four years ago. should we be giddy about this? >> said think we should be glad that we created over 200,000 jobs, but let's remember that about 300,000 people left the labour force. the population went up, and the labour force actually went down because so many people were discouraged that they quit. more than half of the drop in the unemployment rate was simply people going, and sitting on the couch and turning on fox news totally discouraged and are not participating anymore. dennis: how is it that a person decides and not even going to look for work and yet they can still eat. obviously these must be secondary jobs. a 2-income household. >> unnecessarily. hopefully it would be, but it is not necessarily so. they are essentially young people at the beginning of their life cycle who have decided to
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go back to school. student loans are growing at a rapid pace simply because and people cannot find work stuff, so they go back to school and get that message degree that would get the mcjob. and older people are running those down so that there prematurely running down their retirement assets. when they're 65 they have to rely on social security. the participation rate among the elderly, people over 65, when you're older than me, that is rising. more seniors are going back to work because they don't have the assets they need in this lousy economy. hopefully this boom will help give them a break. there is still the zero interest-rate. dennis: just to explain to the people, the reason the unemployment rate goes down which is a good thing, when the labor participation goes down, more people say, yes, and looking for work but haven't found it to drive the rate up. it's a good news bad news thing. you see almost all of the improvement in the job break which peaked at 10% in october,
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you think almost all the improvement is because of the statistical thing with people leaving the work force to back. >> the unemployment rate peaked at 10%. if it wasn't for the statistical quirk the unemployment rate would be almost ten. in fact, the labor force participation rate was the same today as when mr. obama took office in january and the unemployment rate would be almost 11%. the most effective jobs program of the obama administration has been to convince him people to borrow money and go back to school and get out of the way in older people that there really don't need a job for no and they can't live off their retirement. dennis: no wonder the obama administration wanted to hand out college loans to everyone. at 31% 90 daily pay rate. on the other hand, a separate survey of households found that 246,000 new jobs hired by private employers, now is 50 percenttbetter than expectations. we can be happy about that. >> i think we should be.
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certainly in the face of jobs creation. you know, since the president's economic advisory was a political today, let me point out that they told us, they told us that after sequester happen every economic number we would see would be tarnished angeles by the fact we have sequestered. we have had five straight days a row of our records and this fantastic jobs report. what this tells us is by their reasoning the sequester is good for the economy. in fact, i think the whole game at the white house, if we want to really get the jobs picture going out to take mondays off. dennis: there we go. one last thing. it seems like the government policy is getting in the way of growth as opposed to companies see slack demand spirit, steve king government policies are getting in the way? >> let's compare this recovery in the reagan recovery. mr. reagan and his unemployment rate peaked at 11%, and he had
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equally intractable problems. right now if we look at the recovery, the economy has grown on average of about 2 percent per annum since it began. at the same point mr. reagan had a growth rate. he was producing 400,000 jobs a month. that is the kind of jobs grew three need to get the unemployment rate down to 6% in 3 years. if we had that kind of jobs growth, reagan growth we would get their jobs and unemployment rate down to where it belongs and it would not have to be sitting people on the bench to get down. dennis: there you go again. thank you for being with us. good day, sir. and more reaction on jobs as well as talk about recovery in our country's wealth. today's all-star "money" power panel. president of american wealth management. a senior writer at the weekly standard in a fox news contributor. welcome.
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you're sitting next to me. let's start with you. glass half full, half-empty. >> it is getting to have full site. almost literally a 5050 shot. there is kind of good things and bad things about this number. the thing and just going to say is : three years or so, the amount of time where into this recovery. we are still really not seeing the explosive growth. the gdp, as we know, last quarter, that's of the kind of environment that will constantly create these job numbers a we got today. dennis: what do you think about the jobs? >> i will take it. i will take a movement in the positive direction. i like the fact that the service jobs were up 179,000, 80,000 more than in january. producing jobs of 67,000, 26,000 credit the last month. i'm a glass half full kind of guy. dennis: i like that. a lot of people worry that there
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is an kutcher disconnect between the stock market going up and the economy perking along. doesn't that 246,000 new jobs that private companies hired last month, doesn't that say that there is not as much a disconnect as is here? >> may not as much as we thought, although it seems to be pretty clear that there still is that disconnect. several good things to be excited about. there are also things to be less excited about. long-term unemployment is up slightly. you had in terms of how long people were out of work, the average weeks were up slightly. there are things that are less encouraging, but overall, i think it's good. i'll take it. dennis: scott martin, at what point -- the good thing about the numbers today, not too hot, not too cold, but at what point of that job creation numbers come out and it's so good that stocks tumble because now we worry that the fed will tighten up? >> at what point does ben
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bernanke and companies say we're taking the foot of the gas pedal according to ham it is six and a half percent unemployment. how we get there? adelle think we will get there by job growth. enough people keep dropping of the labour force which is not a good sign. that is like a contrary indicator. that is when the fed stops. that is when, like you said, people start pulling money out of stocks because bond rates normalize and a lot. >> markets always over level. let's talk about the fed members saying that household wealth has recovered to pre recession levels. i kind of like that. >> i struggle with that number. the bottom line is household wells, the middle class, most people have their wealth tied up in their homes. the homes of a recovery value. think is kind of a questionable number. of course, of those homes have large investment accounts of course those group, but i don't think that that is the general american household. i think there is still under the
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gun and it is kind of -- it looks good on the surface but if you really dig down and talk to the average american adult think he does quite as good as those numbers suggest. dennis: let's talk little math. explain something. the sequester cuts, the sequester cuts could lop off a half a percentage point. that is off of a really low number. how is it. 750,000 jobs could be lost which is 26% of the federal jobs and apparel. how is it that results in all of this horrible impact? >> there is a reason that it not take a lot of math and school. look. if you look at the dire predictions about what the sequester was going to do, the early indicators are whether it is these numbers are others that, in fact, it's not likely to be as bad as was predicted by the cbo and others commend you have had private firms have done
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their own analyses, what specifically on the defense industry or whether on the economy more broadly that suggests that people have already priced in a lot of cuts and assumed that these things were going to have an effect. the front loading impact is not likely to be as significant as once thought. dennis: okay. every time stocks have a nice run, taking money off the table. it turns out i now feel brilliant. what are you doing, telling clients? >> you are brilliant. you should feel brilliant. >> people are warriors. the weird thing is that the down markets make people feel worse than the up markets make people feel good. what i have been telling people is an need to have a plan together and. you can't just put all your money in after this jobs. i think, like we talked about, there will be around. things in europe will get better eventually. you have to start getting in there, but i just would not pick
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a particular day. dennis: all right. and i have a theory. the economy will get better as a result of our feeling better, that mood drives economic reaction, why the fed or resell much. it will react first inflation before it even comes. rising stock prices like this, it will start making a lot of us feel better. we have stocks and mutual funds. >> had think it is. that is part of the president's plan which is why i think he is supporting the quantitative easing. he knows that getting this extra stimulus makes us all feel better and do the things that make the economy work a little bit more smoothly, lending money. i agree it is all part of the plan. >> i know it has certainly been really good for me. i hope it's good for you. foxbusiness.com were excellent today. thank you for being with us. up next on "money," enough is enough. some lawmakers have a new plan
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to get the keystone pipeline quickly approved by shutting out president obama entirely. congress is behind it. joins us with this plan. plus, the celebrity guest list from else shows up. concerns are growing that the insurer president may want to stick around permanently. while oil companies want -- ought to be wary. more "money" straight ahead. ♪ the american dream is of a better future,
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♪ dennis: and new plan to push through the keystone xl pipeline. many have felt the project would win approval after yet another positive review last week. the state department. the presidents of neglecting to give it to go ahead. which brings us to nebraska congressman leach terry and his big idea. his game plan, take president obama out of the mix entirely with a new draft bill that does not even require a presidential permit to start building. here to explain is the man with the plan. congressman lee perry. thank you for joining us. this strikes me as turnabout is fair play because president obama loves to circumvent congress and to stem the epa do things on its own without
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approval. >> well, and the epa has tried to interfere in this process before. that has given the president even more power to the lake. i wrote this bill because i am tired of the delays. just to put the delays in perspective, lewis and clark walked the louisiana purchase and 1,121 days. americans won world war ii in 1,366 days. the keystone pipeline has been awaiting the president's approval for 1,361 days. we one of world war sooner than the president has acted on this permit. dennis: that is extraordinary. maybe you would also find it hard to turn thumbs up on the pipeline when hollywood superstars are whispering in your years and one each in exit. now, what to you think? will president obama approve the pipeline? you obviously must think you want if your getting ready to do
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this. >> well, i just see more delays. the way that the state department is setting this of, they did file the is for comments which triggers the process. but the way they set it up just allows more foot dragging and more extensions and more requests for information. that is why i felt a lot of my colleagues, including democrats on the other side felt it was necessary to take control of the situation. that is why we will file a bill that just makes congress the power to deem it. dennis: now, you have to dakota sponsors who are democrats. nine other democrats on board. yet i feel like this bill is kind of smacking the face to the president. outage minutes the lineup democrats? >> well, because they understand a lot of us regardless of party understand how important this pipeline is our national
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security, our energy security and, frankly, is in the just better that we send it through a pipeline from canada and putting it on ships from saudi arabia or venezuela, for goodness sakes? dennis: is there any part of you that thinks president obama might be relieved to have the decision taken out of his hands so that his hollywood friends won't get upset and? >> i think you have really hit on a good point here. we will see how loudly the president screams because the reality is, he does not then have to be the one to choose between his labor friends and his environmental france. congress can make that decision for him. obviously when we have been waiting 1,631 days for permit approval, maybe that is what he has been trying to tell us all along, take responsibility for the permit. dennis: somehow my kind about it. what a fantastic idea. you are a bold congressman.
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>> you never made be heard from again if you fail, but thank you for coming on "money". >> well, thank you. this country needs that pipeline dennis: it sure does. thanks a lot. just a note to our viewers. a 1-2 delay. coming up, no word on a special election to as venezuela bids farewell. interim president swears sen. some fear he may try to stick around longer than planned. some oil companies praise for the worst? plus, think you know who has what share of wealth in america? you probably could not be more wrong. a new video sweeps the internet glowing everything out of the water, and the man behind a joins us. he never have too much "money"? this next guest may think so. ♪ [ kitt ] you know what's impressive?
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♪ dennis: a national day of mourning in venezuela as president hugo chavez is rates that -- laid the rest. getting sworn in as interim president until elections can be held in a few weeks. some were you may want to take over entirely. how bad might that be for the global oil market? joining me now, thank you for being with us. you know, some had hoped venezuela moves to the center. do you think so? >> i think that is unlikely. his chosen successor looks likely to win an election. so far all the signals point to policy continuity. it really maintaining a tough stance. >> the short-term impact on oil. would he continue to trade? >> i think the u.s. will remain an important trade partner in terms of oil. i think that the rhetoric, we
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could see more antagonistic rhetoric going bull work. the trade relationship is solid. >> i saw the u.s. response to the obama administration, reach out and expressed condolences and interest in opening things up. the think that that kind of response is going to bring scorned? does the new guy after zemeckis arouse a beginner and his credit? >> i think he has to prove his credentials and really establish himself as the true air, particularly an environment where he has a very divided movement. >> do you think he wants to stay in office by running for election keep back the think he will do so with strong arm tactics? >> i think sometime in the next to the three months. the government has not announced when they will be held, but he called for new elections very clearly before you went to have surgery. i don't think that they will completely disregard the democratic process. dennis: you will do better on
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this because i am not get this stuff. why him? mike understanding is that by the constitution it should have been the national assembly speaker who becomes interim until the election is held. >> there is some ambiguity in terms of how you can interpret the constitution. i think clearly the movement really wants and to be front and center while he is gearing up for a campaign so that he can continue to be in the spotlight and run the country, helping his electoral competitiveness. dennis: right. dca chance for true, free, fair elections or will they be reached? >> venezuela actually has pretty fair elections when it comes down to the actual process. it is in the run-up to the elections were we see a fairly uneven playing field in terms of resources. >> i see.
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>> really facing an uphill battle given the sympathy factor and also the fact that the opposition is feeling pretty weak and demoralized following their defeat last year. dennis: what do you tell them? should they be worried about this guy with think he is not as bad? >> i think we are going to see near-term policy continuity and very much more of the same. medium to longer term if their is a significant drop in production or oil prices we might see the government trying to improve terms for investors. but i think that is going to be a longer-term story. for now i think business as usual. dennis: okay. meanwhile. thank you for being with us. time now for the fuel gauge report. bad news for drivers. expectations for higher demand sent gasoline futures rallying
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selling data new high for the year. fedex ceo sees potential in natural gas, an interview with wall street journal. he expects truck fleets to make a big shift. he says fedex is testing for natural-gas trucks. and he also says fedex those chains' more of its 90,000 trucks if the tests are successful. and konica phillips rolling the dice. preparing to drove up to a two exploratory wells in the alaskan arctic next year. it will be in the same area where shell suffered major drilling setbacks last year. nothing like a little hope. and next on "money," a new video on wealth distribution goes by road. if you think you know who gets what share of the "money" pie, here is a hand. you are way off. the man behind the research released by the staggering stats. plus, the chinese economy looking gloomy. carrying risk for the u.s. economy.
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thank you do. a new video breaking it down is going by row. almost 4 million hits on youtube. research is done by two professors to ma one at harvard and when it duke. asking one and 5,000 americans to questions. first, what they think wealth distribution is in our country. you see that here. and then they asked and also what the ideal distribution would be. a flatter curve and more of the middle-class sharing. the actual distribution of wealth in our nation. as surprising as the results may be, does that mean it is wrong? joining us now, one of the authors of the study. i think i did that right. modem to the show. first, let me just cut, every researcher has a bias. are you troubled by the wealth gap? do you feel like the reason the poor are poor is because directly the rich are earning too much? >> i think there are lots of reasons for wealth inequality.
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the question is what we find to optimize. i am an educator. as and my time trying to teach people. i worry a lot about the lack of distribution of education in the u.s. at think this has a substantial way of becoming -- giving us more into trouble emmeline. i worry about inequality personally from the perspective of inequality of education and what this could mean down the line. dennis: said billionaires', bill gates, warren buffett, they give money to education. they agree with your concern. is it their fault, the rich guys? >> this is not the question of fault. i think the question is that when you create an incentive for particular types of wealth distribution there is a particular kind of income and wealth distribution being created. the question is the down and upside consequences for the
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economy and for society. also good things about inequality. one of the good things, it provides people the opportunity to move up and provide the incentives. also has some potential downside. i think we just need to think about the pluses and the negatives. think about one of them. dennis: something called the jenny index which shows that the nations with the highest-between rich and poor actually have far more robust economies. they create more jobs, grow more, and job growth is the way to get the ports are more money. one thing i don't understand. >> i don't think that is actually correct. the efficient is the number that describes the inequality in the u.s. and china. very similar. some countries and south america if you actually look at a robust economy it does not help. in fact, the very large coefficient is a good reason to get the lower income people to try to rebel against the older
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in society. it is not a good index of stability. dennis: and get across asia 1 billion people tripled their per-capita income to move into the middle-class despite this wide gap between rich and poor. why is it that some of the focus here in this nation from the democrats, from liberals is on trying to pound down wealth at the top instead of figuring out to create jobs and left the bottom? >> i don't think that this is actually correct. i am not sure where you're getting your information from, but i don't think that is our concern with the wealth inequality. in fact, our concern is just at the bottom. for example, if you take the u.s. and you divide the u.s. the net wealth. you ask yourself the conditions
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under which somebody in that population, 40 percent of the u.s. to cover health bills, for example. could send there kids to college or could actually borrow money when they have hard time. there is a recent study showing that half of the people in the u.s. would not be able to find $2,000 in a case of emergency. i what happens if you can't find something in case of emergency. you have to borrow on credit cards. dennis: i need to cut you off here. professor. please stop filibustering. the concern of your study is that the 1% make too much. otherwise what point out that the average worker takes the form of stern was ceo makes an hour in the top 1 percent on top of the nation's stocks and bonds and mutual funds. it sounds like you guys are upset about this. what do you want to do about it? i'm not attacking you.
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c'mon. why would you point these facts out if you're not concerned? why should we do to fix the gap? where should we do to close the gap? >> okay. i think there basically two ways. one of them his sequestration and the other is education. tithing taxation is the short-term band-aid. you could think about whether you one better not. education is incredibly crucial to close the gap, and we need to think about how we do it. right now the way we fund education is not by local taxes, which actually creates to increase the disparity rather than decrease. i do want to go back to this. dennis: on have time for you to go back to anything. we would like to have you back because i enjoy debating with you. thank you for your time. thank you for being such a good sport. on "money," new leaders in china just as new signs point to the economy slowing down. details on how that could hit
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dennis: halfway across the world, around the world, china's economic climate is on its way down. there could be a major domino effect in the u.s. if it collapses. channels over 1 trillion of u.s. debt, hinging hopes for a turnaround on the new incoming president. he takes over this month. reports show that not only of the chinese not investing in their own country anymore, but they are fleeing altogether. we laid down the line. don't kid yourself. if china goes under, you're going to feel it at home. what does not, author of the coming collapse of china. with that title, i think we know exactly what your take will be on this. let me just say, if that china's economy falls to seven and a half percent growth, we would kill for that. >> we certainly will. steven green said no. i think it is more like 38.
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clearly there is a wide range of opinion, but you'll get electricity statistics in manufacturing service, price indices. really looks and a low for range dennis: to you think it is that the chinese government is incompetent and measuring its economy or the chinese government is a bunch of liars? >> a little bit of both. the economy is changing very fast. no matter with the most reliable indicators and things you was to get it wrong. a sampling. nonetheless there are a certain amount of political bumps in those numbers which is why i think there are really off. i think they are of no more than a war in the past. dennis: let's try to deliver and figure out, if chinese growth were to fall in real terms, less than 4 percent, how does that hurt us? >> it doesn't really we have an economy geared to buying, not selling. that is not good for gdp. where it hurts us is the shock.
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when the chinese economy does fall apart people around the world going to say, oh, my god. the stock markets will tank and there will be panic and global markets. dennis: so it's the fraidy-cat factor. everyone thinks the world is falling apart. when certain people argue that the slower china economy could actually be a good thing? we were very worried when the economy was growing over 10%? >> the problem right now, too much debt. what they did to bump up growth rates was jet -- double lot of money into stimulus. an economy which was then over $4 trillion. it created gdp, but it also created asset bubbles. now china has yet to deal with the biggest asset bubble of all which is the property market. dennis: the big short seller. calling for that crisis for a
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good two, three years. he is not wrong. he may have been early. visiting china and talks to officials. talk about bad loans on the books. we just restructured. unemployable sort. civil unrest in the streets. what we're going to do is grow our way and that it. bad loans will fall by half as a percentage of the economy. if china has fallen below 4%, does the bad loan problem resurfaced? >> to create that growth they created a lot of high-speed rail lines to know where. uneconomic. that money has eventually got to be paid back or written off. right now people in china are pretty nervous about what they're going to do with the bad loans mature on the books of the banks. this is a bad situation, and they have not resulted get. dennis: one last question. the sale of family relative the
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love dearly. would you tell them to by china stock-index? >> stay away. although i think you can make money in chinese stocks, the risk factor just is not being accounted for. >> thank you very much. appreciated. dennis: coming up, the highest-paid man and the nfl. at least until the tax man arrives. the baltimore ravens quarterback may want to relocate to another state. he wants to hold on to that title. we will explain. you can never have too much "money." ♪ at od,
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the. >> it is time for a little fun with "spare change." we are joined by monica crowley her new book is out. in a fox news contributor tony. remember those red solo party cups? check out what one company is doing. now you can get a hawaiian martini glass, or a shot glass or a coffee cup for the low price of $6 or $10 great what you think, monica?
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>> six to $10? looking pretty good. >> i think the price point might be a little high, you know if you can afford those kinds of cups from you can probably afford the actual class. >> is someone who has consumed a lot of beverages, i will tell you that no martini drinker will use a red solo cup for a martini. >> sangria, beer, margaritas come absolutely. >> that is not to say that we haven't had wine and champagne. >> that speaking up about games come in the highest paid athlete in the nfl is joe flacco. but he won't be taking all the money hungry that will go
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through the new orleans saints, even though he earns less, doesn't flacco need to relocate? >> i am a lifelong miami dolphins fan. florida has no income tax. >> joe flacco, this is part of his contract negotiations. mainly baltimore, run by liberals. i have to fork over a lot more to the tax man, they said, and yes. and gymboree's place in the great state of louisiana. mayor bobby jindal, low taxes. >> she is actually right.
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obama is blaming republicans for the fiscal cliff raising taxes. >> i argued that flacco was not paying his fair share. >> there is a tax which goes towards athletes. about 53% of his income is paid to some sort of tax. >> states track down visiting team athletes, thing that you owe us for that day, even though they didn't run up state expenses. >> the tax man will always find you, by the way. in 1972, some football players fled to france to prohibit paying taxes in the uk. dennis: let's move onto striking it rich by chance.
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the buyer of a home in long island, found $70,000 worth of works of art in the garage. so he had been them appraised from the collection is now valued at $30 million. what you think, monica? >> i think his family will come knocking on the door there is a picasso, they are about to throw it out and the antiques roadshow as well. i think it is phenomenal. >> this guy was told dump everything in the garage. he didn't have the heart to throw away this man's paintings. seventy paintings of his life's work. put it in the dumpster. but he deserves to have the path of that. absolutely. >> he really does.